Amsterdam-headquartered global digital operator Veon announced that its Bangladesh subsidiary, Banglalink, has entered into an agreement to sell part of its tower portfolio to Summit Towers for BDT 11 billion or roughly equivalent to USD 100 million. Veon said the deal includes a long-term service partnership with Summit Towers.
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Tower Portfolio Sale
Upon closing the deal, Banglalink will transfer over 2,000 towers, which is about one-third of the tower portfolio, to Summit Towers, a company majority-owned by Summit Communications Group, a Bangladeshi infrastructure group.
"Across our markets, Veon operators are transforming into asset-light digital operators. This agreement marks a milestone, ensuring efficient use of resources not only for Banglalink but also for Bangladesh as a whole," said Veon.
"This deal will enable us to focus on our core business as the leading digital operator of the country and continue addressing the unmet demand in entertainment, education, healthcare, and financial services," Veon added.
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Veon's Asset-Light Strategy
According to Veon, "Asset-light business model and value crystallisation of tower assets," have remained one of its three pillar strategies since 2021.
"Banglalink has been successfully transforming into a nationwide digital operator, with internationally recognised high-quality 4G connectivity. Our partnership with Summit Towers enables us to focus our resources on our digital offerings, bridging the digital divide for all and providing an outstanding customer experience to the people of Bangladesh," said Banglalink.
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Banglalink's Digital Transformation
With a customer base of over 40 million users, Banglalink said the proceeds from the sale will be primarily used to service Banglalink's financial commitments while freeing up resources for the company's digital expansion. The closing of the transaction is subject to regulatory approvals from the Bangladesh Telecommunication Regulatory Commission.
